Virginia District Office  – January 12, 2023

u s small business administration

IRS issues updated IRS Form 4506-C

SBA Information Notice
TO: All SBA Employees and SBA Lenders
SUBJECT: IRS issues updated IRS Form 4506-C
CONTROL NO.: 5000- 843625
EFFECTIVE: January 12, 2023

The purpose of this Notice is to inform all SBA employees and SBA Lenders that the Internal Revenue Service (IRS) has released an updated version of IRS Form 4506-C for use by authorized IRS Income Verification Express Service (IVES) participants (revision 10/31/22).

SBA’s Standard Operating Procedure (SOP) 50 10 6, Part 2, Section A, Chapter 6, Paragraph B, sets forth the procedures by which SBA Lenders verify an SBA Applicant’s financial information. These procedures were revised by SBA Procedural Notice 5000-829416 (March 9, 2022), which allowed SBA
Lenders to use either IRS Form 4506-C, IVES Request for Transcript of Tax Return, or IRS Form 8821, Tax Information Authorization to verify SBA Applicant financial information. There has been no change to the process for SBA Lenders using Form 8821 to verify financial information.

SBA Lenders are advised to begin using the new Form 4506-C immediately. However, for applications already in progress, IRS will accept the prior version of IRS Form 4506-C through February 28, 2023.  Beginning March 1, 2023, SBA Lenders submitting requests for tax return transcripts through IVES using the prior version of Form 4506-C risk rejection of the request. SBA Lenders must continue to use the appropriate coversheets with IRS Form 4506-C.

The following links provide additional guidance from IRS:
Subscribe to IRS IVES news
FAQs on the IRS IVES system
Getting started using IVES

SBA Lenders that are IVES participants should direct questions to the IRS point of contact that was provided in the IVES welcome package. SBA Lenders that contract with a third-party IVES participant should direct questions to the third-party IVES participant.

Dianna L. Seaborn
Office of Financial Assistance